Investor Presentaiton
Personal Insurance
1Q19
$2,578
1,998
580
General Insurance: North America results reflect lower NII and the impact of
COVID-19; AY underwriting improvement in Commercial Lines and Personal
Insurance
($ in millions)
Net premiums written
Commercial Lines
1Q20
$2,770
Key Takeaways:
2,225
Net premiums earned
$3,153
545
$2,919
Commercial Lines
2,375
2,145
☐
Personal Insurance
778
774
Underwriting income (loss)
($11)
($86)
Commercial Lines
54
(1)
Personal Insurance
(65)
(85)
Net investment income
$945
$495
Adjusted pre-tax income
$934
$409
Exclude: Impact of COVID-19
($123)
Adjusted pre-tax income (ex. COVID-19)
$934
$532
Underwriting Ratios:
1Q19
1Q20
B/(W)
☐
Net premiums written increased by 7% to $2.8B primarily due to
growth in the assumed reinsurance business, Retail and Wholesale
Property, as well as strong Commercial Lines rate increases, partially
offset by underwriting actions taken through 2019
AYLR, as adjusted, improved 1.7 pts due to change in business mix,
strong rate increases, as well as benefits from underwriting actions
taken in 2019
Expense ratio decreased slightly as the decline in GOE, driven by
ongoing expense discipline, was greater than the decline in net
premiums earned
Catastrophe losses of $205M includes $123M related to COVID-19
NII decreased reflecting alternative investment losses and lower
returns on fixed income securities
North America Combined Ratios 1
Commercial Lines
AY combined ratio, as adjusted
96.4%
95.5%
0.9 pts
100.3%
103.0%
Catastrophe losses and
5.1%
7.0%
5.1%
6.7%
(1.6) pts
reinstatement premiums
(1.8%)
(0.2%)
Prior year development
(2.8%)
(2.2%)
(0.6) pts
98.0%
96.2%
Combined ratio¹
97.7%
100.0%
(2.3) pts
AYCR, as
11.4%
adjusted,
11.2%
Personal Insurance
19.5%
improved 1.8 pts
19.6%
AY combined ratio, as adjusted
103.0%
98.0%
5.0 pts
Catastrophe losses and
5.0%
7.9%
(2.9) pts
reinstatement premiums
67.1%
65.4%
Prior year development
Combined ratio¹
1.2%
108.3%
5.1%
111.0%
(3.9) pts
AYLR, as adjusted,
improved 1.7 pts
(2.7) pts
AIG
1) Calendar year combined ratio includes adjustments for ceded premium
under reinsurance contracts and other in 1Q19 and 1Q20.
1Q19
Calendar Year Combined Ratio
AYCR, As adjusted GOE Ratio
1Q20
CAT Ratio
Acquisition Ratio
PYD Ratio
AYLR, As adjusted
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